HOW BANK DA(DEARNESS ALLOWANCE) IS CALCULATED (EXPLANATION)
BANK DA IS CALCULATED ON CONSUMER PRICE INDEX(CPI) BASED ON YEAR 1960.
- Labour Department will release Consumer Price Index (No.) every month ,based on year 2001.
- Conversion factor to year 2001 is Index No .X 4.63 X 4.93
- BANK DA IS CALCULATED EVERY QUARTER.
- January, February, March is one quarter. Likewise there are four quarters in a year. So, BANK DA changes four times in a year as opposed to two times in central /state government jobs.
- Difference between average CPI over average of previous quarter is called increase in Dearness Allowance.
APR MAY JUNE JULY AUG SEP OCT NOV DEC 2011
(ONLY WHOLE NUMBERS ARE TAKEN.
DECIMALS ADJUSTED IN THE NEXT MONTH )
HENCE INCREASE FOR Feb 2012 is 19x0.15=2.85% of (B.P+SPL.ALLOW.+PQP)
- Labour Department will release Consumer Price Index (No.) every month ,based on year 2001.
- Conversion factor to year 2001 is Index No .X 4.63 X 4.93
- BANK DA IS CALCULATED EVERY QUARTER.
- January, February, March is one quarter. Likewise there are four quarters in a year. So, BANK DA changes four times in a year as opposed to two times in central /state government jobs.
- Difference between average CPI over average of previous quarter is called increase in Dearness Allowance.
- For every increase of 4 points, one slab at the rate of 0.15% is given as Dearness Allowance in banks.
- Since every month’s Consumer Price Index is announced by the labour department on the last day of next month, Dearness Allowance is given effect on the subsequent month, that is, two months later.
EXAMPLE: for Dearness Allowance in Feb 2012:
APR MAY JUNE JULY AUG SEP OCT NOV DEC 2011
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186 187 189 193 194 197 198 199 197
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186 187 189 193 194 197 198 199 197
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Average of Oct,Nov,Dec 2011 =198
On conversion =Average O N D 2011(198X4.93X4.63) = 4519.53
On conversion =Average O N D 2011(198X4.93X4.63) = 4519.53
D.A already paid for Nov. 2011(i.e average of Jul,Aug,Sep)= 401 slabs = 401X4+2836 = 4440.00
(2836 is already merged point in 9th BIPARTITE)
Increase = 79.53
Slabs =79.53/4=19.88=19
(ONLY WHOLE NUMBERS ARE TAKEN.
DECIMALS ADJUSTED IN THE NEXT MONTH )
HENCE INCREASE FOR Feb 2012 is 19x0.15=2.85% of (B.P+SPL.ALLOW.+PQP)
Total D.A for Feb,Mar,Apr 2012=401+19=420 slabs=60.15%+2.85%=63%.
Quarterly DA HISTORY for Bank Employees from 2008:
Month SLABS %
Nov,Dec,Jan 2008
|
40 6.00
| |
Feb,Mar,Apr 2008
|
55 8.25
| |
May,Jun,July 2008
|
63 9.45
| |
Aug,Sep,Oct 2008
|
84 12.60
| |
Nov,Dec,Jan 2009
|
116 17.40
| |
Feb,Mar,Apr 2009
|
133 19.95
| |
May,Jun,July 2009
|
135 20.25
| |
Aug,Sep,Oct 2009
|
154 23.10
| |
Nov,Dec,Jan 2010
|
213 31.95
| |
Feb,Mar,Apr 2010
|
245 36.75
| |
May,June,July 2010
|
264 39.60
| |
Aug,Sep,Oct 2010
|
272 40.80
| |
Nov,Dec,Jan 2011
|
308 46.20
| |
Feb,Mar,Apr 2011
|
333 49.95
| |
May,Jun,July 2011
|
352 52.80
| |
Aug,Sep,Oct 2011
|
360 54.00
| |
Nov,Dec,Jan 2012
|
401 60.15
| |
Feb,Mar,Apr 2012
|
420 63.00
| |
May,June,July 2012
|
428 64.20
| |
Aug,Sep,Oct 2012
|
468 70.20
| |
Nov,Dec.Jan 2013
|
510 76.50
| |
Feb,Mar,Apr 2013
|
535 80.25
| |
May,June,Jul 2013
|
561 84.15
| |
Aug,Sep,Oct 2013
|
593 88.95
| |
Nov,Dec,Jan 2014
|
641 96.15
| |
Feb, Mar, Apr 2014
|
666 99.60
| |
May,June,July 2014
|
650 97.50
| |
Aug,Sep,Oct 2014
|
683 102.45%
| |
Nov,Dec 2014&Jan 2015
|
732 109.80%
| |
Feb,Mar,April 2015
May, June, July 2015
|
734 110.10%
738 110.70%
| |
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